"If I were a dog in a shelter, I'd rather be put down than have to go live in a bad home." That's a real easy opinion to have when you're not the one peering out through the chain link fencing, and I think you would have a different opinion if the guy in the heavy boots and lead were coming to get you for the last time.
I have never worked at an animal shelter or for a rescue league, however, I was raised around animals and after raising three kids I have supported a steady stream of animals including dogs, cats, birds, ferrets, and an iguana that they have brought home over the years. I took them in from owners who didn't want them anymore and I nursed them back to health and found new homes for them. Those that I took to the pound were euthenized, so I didn't take very many there after the kitten incident. I did all this at my own cost, and did it with the understanding that it was what was best for the animal. And yes... my wife and I do watch Animal Planet and see the all the horrendous things worthless owners do their pets as seen by the NYC ASPCA. So what does that have to do with this discussion... nothing.
When I said that the adoption process was getting to a point of expense and intrusion into one's life as to make it an undersireable option, there was a hue and cry about how higher fees were needed due to the high costs of operating these shelters, and having sheltered more than a few animals I know that quite well. And that's just the breaks of these activities. If you're going to place unwanted pets you have to be able to move the animals to new owners. Having members of a rescue group taking more and more animals into their own homes isn't any better of a situation than any of those the Animal Nazis mentioned. Some old lady who has dozens of cats running about the house because she won't have them sterilized is no different than some lady with a dozen dogs at her house because she keeps bringing them home to protect them and then doesn't think many adopters are up to snuff. Good intentions or bad, the situation is still bad.
My point is that these rescue operations need to remember to focus on the animal and the owner, and if your rates are too high, or your policies too restrictive, you aren't going to be providing a service to either party. And if your costs get to the point that you can't afford to continue your program, regardless of how valid or essential the costs are, then it's time to put your heart on the back burner and stop providing the support. The more you make yourself an undersirable option the more problems you're going to have.
Lastly... don't let what you see on Animal Planet shape your judgement on adopters as a whole. They pick extreme cases to make the show interesting. How many bad pet owners do they show a year on those shows? 50? 100? Out of how many million pet owners in that area? Using extreme examples to support your case doesn't do much for the credibility of your argument.